Shares of Designer Brands Inc. (DBI) experienced a notable surge of 3.6% in premarket trading following the release of their fiscal second-quarter report. The parent company of DSW shoe retailer exceeded profit expectations and affirmed its full-year outlook, bringing positive news for investors.
Impressive Financial Results
Despite a decrease in net income from the previous year, Designer Brands Inc. achieved adjusted earnings per share of 59 cents, surpassing the FactSet consensus of 44 cents. Net sales slightly declined by 7.8% to $792.2 million, but still managed to surpass the projected $787.9 million as per FactSet consensus.
Same-Store Sales Decline
While same-store sales numbers were not as promising, falling by 8.9%, it is worth noting that this figure missed the FactSet consensus of a 6.9% decline. The U.S. retail segment experienced a significant drop of 9.2% in sales, while the Canada retail segment suffered a decline of 7.3%.
Encouraging Outlook
Despite near-term headwinds that may persist in the future, Designer Brands Inc. remains optimistic about their prospects for fiscal year 2023. The company has kept its EPS guidance range between $1.20 and $1.50 for the mentioned period.
Promising Stock Performance
Over the past three months leading up to Wednesday, Designer Brands Inc. has seen a remarkable 44% increase in their stock value. In comparison, the S&P 500 has only gained 4.6% during the same period.
Overall, Designer Brands Inc. showcases strong financial performance in their latest report, surpassing profit expectations and maintaining a positive outlook for the future.